On 17 December Chancellor Sunak announced that the coronavirus job retention scheme (CJRS) would be extended to 30 April 2021. He may have known that the Government was likely to extend the tier 4 restrictions, which were in fact extended on 19 December.
Alongside the additional support for furloughed workers, Sunak confirmed that all businesses would be able to apply for the COVID-19 loans until 31 March 2021. These Government back loans generally have no interest payable in the first year, and the smaller Bounce Back Loans require no repayments at all in the first 12 months.
This week the Chancellor announced further support for businesses in England in the retail, leisure, and hospitality sectors which are forced to close because of the national lockdown. These businesses will receive a one-off grant from their local authority depending on the rateable value of their business premises:
|Rateable value for premises||One-off grant for lockdown|
|Up to £15,000||£4,000|
|£15,001 to £51,000||£6,000|
When those businesses are permitted to open again, they will be able to apply for a grant of £2,100 per month.
Businesses located in Wales, Northern Ireland or Scotland will be able to apply for different levels of grant from their local authority. Some devolved administrations are also paying grants to businesses who do not pay business rates, so check the conditions in your local area.
Remember the deadline for submitting funding requests under the CJRS is 14 days after the end of the calendar month the wages were paid for, so by 14 January 2021 for wages relating to periods in December 2020.
Also the deadline for submitting a claim for the third SEISS grant is midnight on 29 January 2021. There is still no information about the promised fourth SEISS grant.
Written by the Tax Advice Network